Unfortunately, the text block never displays.
I'd be grateful for any thoughts/suggestions.
Thank you.
The reason the text block never displays is the server-side condition. That is evaluated at page rendering time and never re-evaluated again.
There are a couple of ways of solving this but the easiest is a creating a helper page item "P2_EE_SHOW_WARNING".
In the on-change dynamic action, add an action of type "Execute Server-side code" to set this item to Y or N (make sure that "Items to return" has "P2_EE_SHOW_WARNING"). (This action does what the Server-side Condition in your question is supposed to do).
Add a show action with client-side condition
apex.items.P2_EE_SHOW_WARNING.getValue() === 'Y'
and a hide action with apex.items.P2_EE_SHOW_WARNING.getValue() === 'N'
.
Let me know how this goes I can put together an example if needed.